GBP/JPY Price Forecast – British Pound Gives Up Early Gains Against Yen

The British pound has tried to rally during the course of the trading session on Friday but that is going to take a major “risk on move” at the very least. Gave back the gains in order to show signs of weakness. The ¥152.50 level continues to be crucial, so I think it is worth paying close attention to. If we can continue to see downward pressure, something may eventually break. It looks to me as if the only reason the pair is holding up at this point is the fact that the USD/JPY pair continues to show strength, meaning that the Japanese yen is extraordinarily weak. Nonetheless, I think eventually this thing could break down. If it does, then I would anticipate a move down to the ¥150 level. The ¥150 level is an area that has been important more than once and could be a major trend defining level.

GBP/JPY Video 15.11.21

Ultimately, I believe that the inverted hammer that has been formed during the session on Friday does suggest that we have further weakness, but with the structural support underneath, you may find more momentum in a pair like the GBP/CHF market, or a handful of others. Quite frankly, when this thing does break down, it could be rather brutal when it happens. I suspect you will see the British pound melting down across-the-board. On the other hand, we could turn around, but I would need to see this market break above the 50 day EMA in order to get bullish. At that point, we could see a run towards the ¥155 level, but it is going to take a significant amount of momentum to make that happen.

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